The new rules would also include a set of requirements for the country’s ten important banks including UniCredit Bank, Gazprombank, VTB, Sberbank , Alfa Bank, Otkritie, Rosbank, Promsvyazbank , Raiffeisenbank and Rosselkhozbank.
As per a release on its website, starting 1 October, all the ten banks that account for more than 60% of the country’s banking sector assets will be required to maintain a liquidity coverage ratio (LCR) of over 60%.
The bank also informed that the minimum LCR would be raised to 70% from 1 January next year which would be further raised to 100% from 1 January 2019.
The ten banks will also be required to follow a different set of regulations. They will need to have an additional capital buffer equal of 0.15% of risk-weighted assets that will be increased in steps to 1% from 2019, reported Reuters.
Despite the new capital buffer rule not being mandatory, any bank that fails to meet them will be subject to restrictions on the distribution of their profits and the pay of their top management.
Image: Ten of Russia’s important banks will need to follow new liquidity rules set by the country’s central bank. Photo: courtesy of Kuba.
